The latest housing statistics published today by the Scottish Government show a 35% reduction in the number of private sector homes completed in 2009 compared to 2008.

Noting the 20% drop overall Jonathan Fair, Chief Executive of home building industry body Homes for Scotland, said: "Today's figures are further proof, if it was needed, of the extent of the housing crisis Scotland currently faces. We believe total housing output will struggle to exceed 12,000 units this year - less than half pre-credit crunch levels and less than half of what is required to simply stand still in response to the 18,000 new households that are formed and the 11,000 homes that are demolished in Scotland each year.

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"With a report from CML today also showing a drop of 33% in house purchase lending in Scotland in the first quarter of the year, the new UK Government must address the mortgage issue once and for all and maintain investment in housing otherwise the social and economic consequences will be severe."

(GK)